National Vision (NASDAQ:EYE) executives said fiscal 2025 marked a “defining year” for the company as it executed a broad modernization plan, expanded operating margins, and shifted its customer mix toward higher-value cohorts such as managed care, progressive lens wearers, and customers bringing outside prescriptions.
Fiscal 2025 results and fourth-quarter performance
For fiscal 2025, National Vision reported net revenue growth of 9% to $1.99 billion and adjusted comparable store sales growth of 6%. Adjusted operating income rose 56% to $102.5 million, with adjusted operating margin expanding 160 basis points to 5.2%. Adjusted EPS increased to $0.80 from $0.52 in the prior year.
CFO Christopher Laden emphasized that fiscal 2025 included a 53rd week versus the prior year. The extra week contributed $35.6 million in net revenue and $3.5 million in adjusted operating income. Comparable sales metrics were reported on a 52-week calendar.
During the fourth quarter, the company opened 12 new America’s Best stores and closed 4, ending the period with 1,250 stores. Laden said fourth-quarter comparable growth was driven primarily by a 5.8% increase in average ticket, partially offset by a 2.5% decline in overall customer traffic. Management attributed the traffic decline to softer self-pay trends, while noting traffic growth for managed care, progressive, and outside Rx customers combined.
Customer mix shift and merchandising changes
CEO Alex Wilkes said the company’s transformation is focused on four growth vectors: expanding with underdeveloped customers, evolving product offerings where underdeveloped, enhancing the patient/customer experience and new store growth, and maintaining discipline on operating margin expansion.
In fiscal 2025, Wilkes said managed care comparable sales grew low double digits and managed care reached 42% of revenue by year-end. Overall traffic declined 0.5% for the year, which management said reflected expected attrition among less profitable self-pay customers being offset by stronger traffic gains in target cohorts. Wilkes added that average ticket increased 6% for the year, supported by pricing and product mix changes.
On merchandising, management said the company expanded its premium and branded frame assortment to better serve insurance and higher-income customers while maintaining a value proposition. Wilkes said the company ended fiscal 2025 with about 40% of frames priced above $99, up from about 20% at the start of the year. New brands introduced included L.A.M.B., Ted Baker, Hugo Boss, Jimmy Choo, and Kendra Scott in the fourth quarter. Looking ahead, Wilkes said America’s Best expects additional frame introductions in 2026, including Burberry, True Religion, Kate Spade, Polo Ralph Lauren, and Costa.
Management also described plans to tailor assortments more locally using data-driven “merchandising clusters.” Stores are expected to be aligned into five merchandising tiers, with branded frame mix expected to rise from about 40% to about 70% by the end of the year, depending on store cohort.
Smart glasses and lens initiatives
Wilkes highlighted early results from smart eyewear, saying sell-through of Ray-Ban Meta AI glasses has exceeded expectations. As of the fourth quarter, Meta was available in 300 stores, and the company expects it to be available in all stores by the end of the second quarter. In Q&A, management said it does not have an exclusive arrangement with Meta and expects to participate in smart eyewear across platforms over time.
Executives also said the company is seeing high prescription lens attachment on Meta transactions and “a very high degree” of premium lens add-ons, contributing to among the highest-value transactions in the business.
On lenses more broadly, Wilkes said the company is working to simplify lens and insurance pricing constructs to reduce friction and make upgrades easier to understand. Management said it grew key lens products in 2025, including anti-reflective coating, advanced materials, transitions, and progressives. The company expects to begin offering Stellest, an FDA-approved lens designed to slow myopia progression in children with myopia, and plans to introduce a tier four progressive lens later in the year.
By the end of 2026, Wilkes said the company expects progress closing category gaps in lens mix, including premium materials approaching 60% from about 50% currently and anti-reflective mix approaching 50% from about 40%.
Marketing, technology modernization, and operations
Wilkes said America’s Best shifted in 2025 from a primarily promotional posture toward a brand-led approach, including a new logo, refreshed design, and a national creative campaign, “Every Eye Deserves Better.” He said the campaign expanded audience targeting toward higher-value customers while maintaining value messaging for pragmatic, value-seeking self-pay consumers. Wilkes said unaided awareness increased and reached the highest in the category.
For 2026, Wilkes said the company is adding a new media partner, Infinite Roar, and plans to expand into mid-funnel marketing such as influencers, social media, audio, and sponsorships. He also cited CRM improvements following the launch of a new CRM platform in fall 2025, noting early results from a lapsed customer journey in the fourth quarter were “nearly twice as effective” as the prior approach, though on a smaller base.
Technology investments highlighted included deployment of the Adobe Experience Platform, integration of Adobe CRM capabilities, and modernization of foundational systems, including an end-to-end Oracle ERP launched in 2025 with expanded capabilities planned in 2026 and 2027. The company also cited continued investment in Microsoft and Databricks-based data platforms.
Operationally, Wilkes said the company rolled out a more consultative selling model and deployed iPads and digital tools to improve product matching and demystify lens selection. He also described store refresh efforts focused on graphics, signage, pricing presentations, and associate dress standards, which management said were achieved with modest investment. Wilkes also said remote exam technology remains integral, offering capacity flexibility and supporting a “remote hybrid model” where in-store doctors perform exams in other stores remotely.
Balance sheet, capital allocation, and 2026 outlook
Laden said the company ended fiscal 2025 with $38.7 million in cash and total liquidity of $332 million, including revolver availability. During 2025, National Vision repaid $101.3 million in long-term debt and convertible notes, ending the year with total debt (net of unamortized discounts) of $245.9 million and net debt to adjusted EBITDA of 1.1x. Operating cash flow was $146.3 million, and capital expenditures were $72.8 million, primarily for stores and IT.
The board approved a new share repurchase authorization of up to $50 million through December 28, 2030, following the expiration of the prior authorization on January 3.
For fiscal 2026 (a 52-week year), management guided to:
- Net revenue: $2.03 billion to $2.09 billion
- Adjusted comparable store sales: 3% to 6%
- Adjusted operating income: $107 million to $133 million
- Adjusted diluted EPS: $0.85 to $1.09 (about 82 million weighted average diluted shares)
- Capex: $73 million to $78 million
- New stores: about 30 to 35 openings; about 10 to 15 closures (net 20 to 25)
Laden said margin expansion in 2026 is expected to be primarily driven by SG&A leverage and includes progress on a multiyear cost savings plan, with about $10 million in annualized savings expected in 2026. He also said the quarterly margin profile will be affected by the return to a 52-week year and other calendar factors, with Q1 and Q3 expected to show more favorable year-over-year growth and Q2 and Q4 expected to be flat to modestly higher.
In Q&A, Wilkes said the company is seeing mid-single-digit comparable store sales growth quarter-to-date in the first quarter despite weather disruptions, and he reiterated confidence that the multi-year strategy of shifting toward higher-value customer cohorts can support profitability expansion, even if self-pay traffic remains more variable.
About National Vision (NASDAQ:EYE)
National Vision Holdings, Inc is an American optical retailer specializing in accessible vision care and eyewear. The company operates under multiple retail banners, offering comprehensive eye health services and a wide range of optical products. Since its founding in the early 1990s, National Vision has focused on providing value-driven solutions, targeting underserved and price‐conscious consumer segments.
Through its primary retail brands—including America’s Best Contacts & Eyeglasses, Eyeglass World, Optical America and Vista Optical—National Vision delivers services such as comprehensive eye examinations, prescription eyewear, contact lenses, sunglasses and lens accessories.
